Improve Your Credit

The 7 best secured credit cards with low APRs

29 January 2018

New or damaged credit? Secured credit cards can be ideal.

Consumers who apply for secured cards often have lower credit scores, so they’re viewed as riskier borrowers. Of course, greater risk usually means higher APRs. However, not every secured card charges high interest. In fact, you can find top-notch cards that also have low APRs.

Get a card that can help you build credit. Determine your own credit limit. When you apply, you'll open a two-year certificate of deposit (CD) with $250 to $5,000. The balance of your CD is your credit limit.

To get this card, you need to become a member of the State Department Federal Credit Union. To do that, you can join the American Consumer Council for $5. You also need to open an SDFCU savings account with a minimum of $1. Learn more about how to join SDFCU.

Rewards. Earn 1 Flexpoint — SDFCU’s reward points — for every dollar you spend and 5 Flexpoints when you pay through bill pay.

Fewer fees. No balance transfer or foreign transaction fees.

Watch out for required membership with SDFCU.

Digital Federal Credit Union Visa Platinum Secured Credit Card

No annual fee, low upfront cost

The DCU Visa Platinum Secured doesn’t have the lowest interest rates but it does have one of the lowest minimum deposits — $5. It offers a respectable 12.25% APR across the board and has no annual fee.

You can get this card by joining the Digital Federal Credit Union. To do that, just join Reach Out for Schools for $10 when you open a DCU account. Then fund your DCU savings account with a minimum of $5. In total, it’ll cost as little as $15 to open your secured card. Learn more about joining the DCU.

Watch out for required membership with the Digital Federal Credit Union.

Other options

These secured cards have low APRs but are held back by significant weaknesses. Before considering these cards, look into the two cards we list above.

Primor Secured Visa Gold Card

Low fixed APR, easy approval

The Primor Secured Visa Gold Card offers a low fixed APR of 9.99%, which means your interest rate won’t change for as long as you have the card. The card is also relatively easy to obtain since it doesn’t have a minimum credit score requirement.

The downside to the card is its $49 annual fee — not exactly cheap when you also have to put down a $200 security deposit.

Minimum deposit. $200.

Fixed interest rate.

No minimum credit score requirement.

No penalty APR.

Watch out for the $49 annual fee.

Applied Bank Secured Visa Gold Preferred Credit Card

Low fixed APR

Like the Primor card, the Applied Bank Secured Visa Gold comes with a low fixed APR of 9.99%. However, it has a $48 annual fee. The card also doesn’t offer a grace period on interest — which is an enormous disadvantage —which means you’ll accrue interest as soon as you swipe your card.

Minimum deposit. $200.

Fixed interest rate.

No penalty APR.

Watch out for the $48 annual fee and no grace period on interest.

Navy Federal Credit Union nRewards Secured Credit Card

Potentially low APR

With the nRewards Secured Credit Card, you may receive a purchase and balance transfer APR as low as 9.74%. But if you’re considered a weaker applicant, you may be given an APR as high as 18%.

You need to deposit at least $500 to open the card. On the plus side, however, you won’t have to pay an annual fee.

You can apply for this card if you’re a member of the Navy Federal Credit Union. To join, you must be affiliated with the military.

Minimum deposit. $500 into a Navy Federal savings account.

No annual fee.

Rewards. Earn 1 nRewards point for every dollar you spend.

No cash advance fees at Navy Federal branches or ATMs.

No foreign transaction fees.

Watch out for the military affiliation requirement to join the Navy Federal Credit Union.

USAA Secured Card Platinum Visa

Potentially low APR

The USAA Secured Card Platinum is similar to the nRewards Secured Credit Card: You may be given an APR as low as 10.65% or as high as 20.65%, depending on your creditworthiness. To open the card, you must pay a $35 annual fee.

Additionally, you need to open a two-year certificate of deposit (CD) with at least $250. You’ll earn a variable 0.54% APY — or annual percentage yield — on your CD balance.

You can apply for this card if you’re a USAA member. To join, you must be a member of the military, a veteran who was honorably discharged or an eligible family member of military personnel. Learn about joining the USAA.

Minimum deposit. Open a two-year COD with at least $250.

No penalty APR.

No foreign transaction or overlimit fees.

Watch out for a $35 annual fee and a military affiliation requirement to join the USAA.

First Progress Platinum Prestige Mastercard

Potentially low APR, easy application

The First Progress Platinum Prestige Mastercard comes with an APR that can be as low as 9.99% depending on your credit history. The card has an annual fee of $49 and offers a 25-day grace period at the end of each billing cycle.

You can apply for the First Progress Platinum Prestige Mastercard either over the phone or online. Most online reviews harp on the poor customer service.

Many secured-card providers will check your credit. For that reason, you may be declined if your credit score is too low. If you’re declined for a secured card, consider applying with a provider that doesn’t check your credit history.

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